There is no reason for a competitive firm to stay in business if it is making zero economic profit.

Name: There is no reason for a competitive firm to stay in business if it is making zero economic profit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Zero economic profit means the firm is covering all its costs, including opportunity costs, making it worthwhile to continue operations as it's earning a normal return on its investment.

There Is No Reason for a Competitive Firm to Stay